Artemis Gold Inc · TSXV:ARTG
Artemis Gold — Investor Presentation (September 2021)
29 slides from Artemis Gold's investor presentation, September 2021
Slide 1: Disciplined Development of the Blackwater Gold Project in BC
Mission Statement: ToMission create and grow sustainable value by applying leading, technically Statement : To create and grow sustainable value by applying leading, technically excellent excellent andand differentiated differentiated approaches to approaches to managing managing mining assets minin
Slide 2: Forward Looking & Cautionary Statements
Forward Looking & Cautionary Statements This presentation contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws (together, “forward-looking statements”). Forward-looking statements can generally be identi
Slide 3: Why Invest in Artemis Gold?
Why Invest in Artemis Gold? • Proven Track Record of Execution and Value Creation: • Same team that founded, developed, operated and sold Atlantic Gold • Board and Management Alignment with Shareholders: • Board/Management own 41% of the fully diluted shares • Invested $138M in the company over the
Slide 4: Why Invest in Artemis Gold (continued)
Why Invest in Artemis Gold (continued) • 3-Stage Development Unlocks Value: 2020 PFS • Initial Development Capital: $592M • Payback Period: 2 years • Levered1 after-tax IRR: 50% • After-tax NPV (5%): C$2.2bn (US$1541 gold price, 0.76 US$:CAD$ F/X) • Economics include the impact of the gold stream gr
Slide 5: Value Creation Through Derisking and Execution
Value Creation Through Derisking and Execution Atlantic Gold (2014 - 2019) • Acquisition to Production in 3 years • +1,129% return to shareholders • GDXJ Index down 29% during the same period Artemis Gold (2020 -) • Acquired Blackwater in August 2020 • Targeting all permits by end of Q1 2022 • Targe
Slide 6: Derisking Blackwater One Catalyst At A Time
Derisking Blackwater One Catalyst At A Time • Artemis is building on a track record of delivering derisking catalysts on time and in line with guidance Senior Management Depth (Q1 2021): Addition of Jeremy Langford (COO) and Candice Alderson (SVP Corporate Affairs) GMP Process Plant (Q1 2021): Insul
Slide 7: Blackwater Project 2020 PFS Summary
Blackwater Project 2020 PFS Summary After accounting for the gold stream granted to New Gold Gold Price –US$1,541/oz Phase 1 Phase 2 Phase 3 Phase 4 LOM Years 1-5 6-10 11-17 18-23 23 years Initial/Expansion Capex $592m $426m $398m Nil $1,415m Sustaining Capex1 $132m $199m $273m $107m $712m Throughpu
Slide 8: Broad Zones of Mineralization drive the low LOM strip
Broad Zones of Mineralization drive the low LOM strip A – Long Section N 5892775 E W A B – Cross Section E 375050 B C N S C – Cross Section E 375550 N S TSX Venture: ARTG www.artemisgoldinc.com 8
Slide 9: Targeting a High-Grade Starter Zone (Years 1-7)
Targeting a High-Grade Starter Zone (Years 1-7) Bench 1570 – Within Year 1 Pit Design High-grade starter zone for the first seven years: • 50.5 M tonnes processed from the southwest zone of the deposit • Average grade processed: 1.50 g/t gold • <2 strip ratio Bench 1570: • 1 of 7 benches to be mined
Slide 10: High Grade Continuity: Ramped up to 35,000 tpd (Year 7)
High Grade Continuity: Ramped up to 35,000 tpd (Year 7) Bench 1480 – Within Year 7 Pit Design Bench 1480: • 1 of 8 benches to be mined within the seventh year of operation Bench 1480 – YR7 COG (AuEq g/t) Tonnes (kt) AuEq (g/t) koz >0.24 – 0.50 2,406 0.36 27.79 >0.50 4,554 1.39 203.11 Total 6,960 1.0
Slide 11: Grade Control Drilling Results: High-Grade Starter Zone
Grade Control Drilling Results: High-Grade Starter Zone • 33,000m RC Drill Program • Targeting 5 million tonnes of high grade mineralization • Refined drill density down to 12.5m x 12.5m spacing • Derisks production and mine plan at start of operations • Improved definition of waste to ore boundarie
Slide 12: Grade Control: Section 5892787.5N
Grade Control: Section 5892787.5N Section 5892787.5N Section Highlights (Au only): • BWRC00152: 6m @ 11.0 g/t Au (starting at 6m) • And 21m @ 3.8 g/t Au (starting at 24m) • BWRC00155: 18m @ 4.4 g/t Au (starting at 27m) • BWRC00156: 18m @ 5.4 g/t Au (starting at surface) • Including 3m @ 22.7 g/t Au
Slide 13: Grade Control: Section 5892775N
Grade Control: Section 5892775N Section 5892775N Section Highlights (Au only): • BWRC00132: 24m @ 3.0 g/t Au (starting at surface) • BWRC00139: 12m @ 5.0 g/t Au (starting at 57m) • BWRC00142: 27m @ 3.0 g/t Au (starting at 39m) • BWRC00143: 15m @ 4.0 g/t Au (starting at 21m) • BWRC00145: 15m @ 5.0 g/
Slide 14: Grade Control: Section 5892762.5N
Grade Control: Section 5892762.5N Section 5892762.5N Section Highlights (Au only): • BWRC00110: 45m @ 5.6 g/t Au (starting at 18m) • Including 3m @ 30.5 g/t Au (starting at 18m) • BWRC00114: 30m @ 2.3 g/t Au (starting at 30m) • BWRC00115: 21m @ 2.9 g/t Au (starting at 12m) • BWRC00118: 21m @ 4.1 g/t
Slide 15: Differentiators: Blackwater Gold Project
Differentiators: Blackwater Gold Project • Tier 1 mining jurisdiction in Central British Columbia • Environmental Assessments Approved in 2019 • Supportive Primary Indigenous Nations: • Participation Agreement with Lhoosk’Uz Dené Nation and the Ulkatcho First Nation executed in April 2019. • Nazko I
Slide 16: Blackwater: Bottom Quartile AISC
Blackwater: Bottom Quartile AISC • The World Gold Council reported average AISC of US$1048/oz in Q1 2021 • With AISC of CAD$811 per ounce or US$616 per ounce (assuming 0.76 US$:CAD$ F/X) , Blackwater falls into the bottom quartile of the global cost curve. 2021 CO-PDT AISC (US$/OZ AU EQ.) – JUNIOR P
Slide 17: NPV/Capex – Blackwater Stands Out
NPV/Capex – Blackwater Stands Out • With an NPV/Initial Capex ratio of 3.8x, the Blackwater project stand out relative to the developer average of 2.30x. 3.80x 3.37x 2.86x 2.82x 2.71x 2.60x 2.36x 2.23x Median: 2.30x 1.97x 1.85x 1.14x 1.05x 0.16x n.a. n.a. Artemis Sabina Orla Osisko Corvus Skeena Mar
Slide 18: Blackwater Gold Production and AISC
Blackwater Gold Production and AISC Notes: FCF = Operating Cash Flow – Sustaining Capex (includes Closure Costs) – Cash Taxes (Excludes Expansion/Growth Capital) TSX Venture: ARTG www.artemisgoldinc.com 18 Exp. Capex = Expansion Capital, AISC = All-In Sustaining Costs
Slide 19: Exploration Potential: Open to the North, Northwest and at depth
Exploration Potential: Open to the North, Northwest and at depth • Already a 23-year reserve life • Long-term exploration upside potential remains substantial • Open to the North • Open to the Northwest • Open at depth in the South • 1,500 km2 largely untested land package, including the Capoose dep
Slide 20: Gold Price Resource Upside: $2,000/oz AuEq Pit Shell
Gold Price Resource Upside: $2,000/oz AuEq Pit Shell Purple Surface – PFS US$1,400/oz AuEq pit limit • Current reserves based on a US$1,400/oz gold price pit shell • At a US$2,000/oz gold price, the pit shell potentials expands Additional Resource in US$2,000/oz Au pit shell US$2,000/oz AuEq pit she
Slide 21: In Situ Value – Selected Developers
In Situ Value – Selected Developers EV / RESERVES (US$/OZ AU EQ.) $496 $436 $275 $217 $186 Median: US$186/oz Au Eq. $160 $125 $83 $57 $47 n.a. n.a. n.a. n.a. n.a. Artemis Sabina Orla Marathon Osisko Corvus Skeena Novagold Belo Sun Liberty Gold Probe Mining Pure Gold Orezone Resources Resources Perpe
Slide 22: P/NAV – Selected Developers
P/NAV – Selected Developers • Artemis is trading at 0.50x P/NAV compared with the average developer value of 0.67x P/NAV P/NAV (RATIO) 0.83x 0.81x 0.78x 0.72x 0.70x 0.70x 0.64x 0.64x Median: 0.67x 0.58x 0.47x 0.50x 0.39x 0.37x n.a. Artemis Sabina Orla Marathon Corvus Osisko Skeena Liberty Gold Belo
Slide 23: Capital Structure
Capital Structure Large Shareholders: Capital Structure (As of September 1, 2021) Issued & Outstanding Shares (M) 152 • Ryan Beedie • Amiral Gestion (Director) • Chris Batalha Options (M) 6 • Steven Dean (CFO) Warrants (M) 33 (Chairman & CEO) • AMG Fully Diluted Shares O/S (M) 191 • Blackrock • Davi
Slide 24: Upcoming Catalysts for Artemis Gold
Upcoming Catalysts for Artemis Gold • Steady stream of catalysts and de-risking events for ARTG over the next 12 months Credit Approved Project Debt Jeremy Langford Term Sheets Appointed COO Gerrie van der Westhuizen Grade Control Powerline GMP Appointed VP Finance Program Results Candice Alderson A
Slide 25: Management Team
Management Team Steven Dean Jeremy Langford 41% Fully Diluted Insider Ownership Chairman & Chief Executive Officer Chief Operating Officer $138 M invested in the company Steven Dean has extensive experience internationally in Jeremy Langford has multi mine gold producer experience mining, including
Slide 26: Artemis Gold Inc.
Artemis Gold Inc. Artemis Gold Inc. +1 (604) 558-1107 | info@artemisgoldinc.com 3083 - 595 Burrard Street, Vancouver, BC, Canada V7X 1L3 www.artemisgoldinc.com TSX Venture: ARTG www.artemisgoldinc.com 26
Slide 27: Appendix I: Mineral Resource Estimate for Blackwater
Appendix I: Mineral Resource Estimate for Blackwater Measured & Indicated Mineral Resource Estimate (Effective May 5, 2020) In-situ Grades In-situ Contained Metal Cut-off Tonnage AuEq Au Ag AuEq Au Ag (g/t AuEq) (kt) (g/t) (g/t) (g/t) (koz) (koz) (koz) 0.20 596,765 0.65 0.61 6.4 12,406 11,672 122,38
Slide 28: Appendix II: Mineral Reserve Estimate for Blackwater
Appendix II: Mineral Reserve Estimate for Blackwater Proven & Probable Mineral Reserve Estimate (Effective August 18, 2020) In-situ Grades Contained Metal Tonnage AuEq Au Ag Au Ag Reserve Class (Mt) (g/t) (g/t) (g/t) (Moz) (Moz) Proven 325.0 0.78 0.74 5.8 7.8 60.5 Probable 9.1 0.84 0.80 5.5 0.2 1.6
Slide 29: Appendix III: Analyst Coverage
Appendix III: Analyst Coverage Institution Analyst Email BMO Capital Markets Andrew Mikitchook andrew.mikitchook@bmo.com Canaccord Genuity Kevin Mackenzie kevin.mackenzie@canaccord.com Cormark Securities Richard Gray rgray@cormark.com Haywood Securities Pierre Vaillancourt pvaillancourt@haywood.com
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